Effects of national culture on bank risk-taking behavior
Journal article
Ashraf, B., Zheng, C. and Arshad, S. (2016). Effects of national culture on bank risk-taking behavior. Research in International Business and Finance. 37, pp. 309-326. https://doi.org/10.1016/j.ribaf.2016.01.015
Authors | Ashraf, B., Zheng, C. and Arshad, S. |
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Abstract | Theory suggests that national culture influences bank risk-taking behavior directly by conditioning the decision-making of human participants. This study uses an international sample of banks from 75 countries and examines the direct effects of national culture on bank risk-taking behavior. We measure national culture with four dimensions – uncertainty avoidance, individualism vs. collectivism, masculinity vs. femininity and power distance – from Hofstede's framework of national culture. We find strong evidence that bank risk-taking is significantly higher in countries which have high individualism, low uncertainty avoidance, and low power distance cultural values. We confirm main results using alternate cultural dimensions from House et al. (2004. Culture, Leadership, and Organizations. Sage)’s framework of national culture, using alternative bank risk-taking proxies, and using instrumental variables analysis for endogeneity issues. This paper adds to our understanding by finding that cultural values lead to bank risk-taking decisions that may deviate in systematic and geographically predictable ways. |
Year | 2016 |
Journal | Research in International Business and Finance |
Journal citation | 37, pp. 309-326 |
Publisher | Elsevier |
ISSN | 0275-5319 |
Digital Object Identifier (DOI) | https://doi.org/10.1016/j.ribaf.2016.01.015 |
Web address (URL) | http://www.scopus.com/inward/record.url?eid=2-s2.0-84954305716&partnerID=MN8TOARS |
Publication dates | |
Online | 07 Jan 2016 |
Publication process dates | |
Accepted | 07 Jan 2016 |
Deposited | 11 Nov 2022 |
Accepted author manuscript | License File Access Level Open |
https://openresearch.lsbu.ac.uk/item/9264q
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Accepted author manuscript
Effects of National Culture on Bank Risk-taking Behavior-Haplo.pdf | ||
License: CC BY-NC-ND 4.0 | ||
File access level: Open |
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